Loading...
HomeMy WebLinkAbout11/28/2001 - STAFF REPORTS MINUTES OF CITY OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY JUNE 6, 2001 A Regular Meeting of the Community Redevelopment Agency of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, June 6, 2001, at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Jones, Hodges, Oden, Reller-Spurgin, and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Agency procedures on June 1, 2001. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 5 of agenda this date. APPROVAL OF MINUTES: It was moved by Oden, seconded by Reller-Spurgin, and unanimously approved that the Minutes of May 16, 2001 be approved. PUBLIC HEARINGS: A. FISCAL YEAR 2001-02 BUDGET That the Agency consider adoption of the Community Redevelopment Agency Fiscal Year 2001-02 budget. Executive Director summarized the budget and added that there are some major changes; that the transfer concerning the Palm Mountain Resort and the Spa Hotel were not made due to the increase of deficit the transfers would have on the General Fund; that in all likelihood the transfers would again be implemented in future budgets; but that the matter will come before the Agency as a year to year policy decision. Agency Member Jones questioned if the transfer is not done would the General Fund hold the funds. Executive Director stated that the election to pay or not is up to the Agency, but if the General Fund retains the allocation, the deficit will be kept lower. Chairman declared the hearing opened; there being no appearances, the hearing was closed. CRA Minutes 6-6-01, Page 2 Executive Director stated that the purpose of the meeting is to approve the budget; that answers are available to any questions; that the funding recommended for nontransfer will be funded out of reserve; that as a result of a cost benefit analysis this is the recommended avenue; and that the action could be amended should the Agency desire. Redevelopment Director stated that the lighting project is proceeding; that the budget does allow for the purchase of the fixtures; that the property owners do reimburse the purchase of the standards; that the Agency provides the power source and the base of the fixture; that the cost is about $2,500 per fixture; and that the budgeted amount is for the uptown area only. Agency Member Hodges requested clarification on the allocation for the Plaza Theatre. Director of Finance & Treasurer stated that the funding is $200,000; that the allocation will be targeted for repairs and upgrades and the like; that this budget does allocate the funding for the Director of Downtown Development; and that the housing portion does include several projects that have been budgeted in the past and have not been completed. Chairman requested that analysis regarding possible revenue generation be done relating to the Owner Participation Agreements with Palm Mountain and VIP Motors. Director of Finance & Treasurer stated that redevelopment funding does increase when property values rise; that tax increment is a function of the Agency budget; that most expenses for the Agency are fixed and when revenues rise the impact is shown; and recommended approval of the matter. Agency Member Oden requested the Agency budget be included in the quarterly review of the City's budget. Resolution 1126 as recommended was presented; after which, it was moved by Oden, seconded by Hodges and unanimously carried, that R1126 be adopted. PUBLIC COMMENTS: Howard Lapham, no address given, stated that the Burnett Development is the type of development that is needed in the City; and requested approval of the item. LEGISLATIVE ITEMS: B. BURNETT DEVELOPMENT That the Agency consider Amendment #1 to A409C, Exclusive Agreement to Negotiate with Burnett Development Corporation to extend the term by four months, regarding property located on the corner of Sunrise Way and San Rafael Road. CRA Minutes 6-6-01,Page 3 Redevelopment Director stated that the recommendation is being revised to reflect a six month time period; and that the additional time would allow the developer to complete necessary actions. Chairman questioned the time of the term of the initial approval. Redevelopment Director stated that originally the time was 180 days and that this would allow an additional 180 days. Agency Member Jones questioned if the agreement would retain the allowance for eminent domain. Redevelopment Director stated that the proposed amendment is for a time extension only; that the language for the contemplation of eminent domain does remain in the agreement, but that there is no commitment on behalf of the Agency. Agency Member Jones stated that the agreement does need to be clear regarding the issue of allowance of eminent domain and added that personally there will be no support of the matter. Agency Member Oden stated that the project is continuing and that it is hoped that the completion date will be within six months. Resolution 1127 as revised, to increase the term to six months, was presented; after which, it was moved by Reller-Spurgin, seconded by Hodges and unanimously carried, that R1127 be adopted. C. PARKING STRUCTURE — 200 SOUTH INDIAN CANYON Recommendation: That the Agency approve Amendment #1 to A418C with Dozier Appraisal Company to determine market values of properties included in the proposed construction of a downtown parking structure along the west side of 200 Indian Canyon Drive, between Arenas Road and Baristo Road for$15,500. Downtown Development Director reviewed the staff report. Agency Member Jones stated that the agreement includes the taking of property and questioned if the taking was by mutual consent. Executive Director stated that at the present time it is voluntary and the property owners are interested. Resolution 1128 as recommended was presented; after which, it was moved by Hodges, seconded by Reller-Spurgin, and unanimously carried, that R1128 be adopted. CRA Minutes 6-6-01,Page 4 D. DESERT FASHION PLAZA Recommendation: That the Agency approve an Exclusive Agreement to Negotiate with John Wessman, dba Wessman Development Company, for the Desert Fashion Plaza, located on a 13-acre parcel on the corner of Tahquitz Canyon Way and Palm Canyon Drive. City Attorney requested the matter be continued to allow additional time to complete the necessary documents. Motion to continue the matter to June 20, 2001 was presented; after which, it was moved by Reller-Spurgin, seconded by Jones, and unanimously carried that the item be continued to June 20, 2001. ADJOURNMENT: There being no further business, Chairman declared the meeting adjourned. PATRICIA A. SANDERS City Clerk MINUTES OF CITY OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY June 13, 2001 An Adjourned Regular Meeting of the Community Redevelopment Agency of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, June 13, 2001, at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Jones, Hodges, Oden, Reller-Spurgin, and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Agency procedures on June 8, 2001. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 5 of agenda this date. PUBLIC HEARING: A. GARDEN SPRINGS APARTMENTS Recommendation: That the Agency approve a Disposition and Development Agreement with Garden Springs Apartments, a California Limited Partnership, to facilitate the application for a low-income housing tax credit and the development and construction of the Garden Springs Apartments, located at the southeast corner of Indian Canyon Drive and San Rafael Road and amend the budget thereto. A421 C. Redevelopment Director reviewed the staff report. Chairman declared the Hearing open. Emily Hemphill, stated that the project closely meets the City's housing goals in the General Plan; that currently there is a need for low and moderate housing in the City; that the City is experiencing an overcrowding in the moderate income units; that this project addresses the need; that the units are 3 to 4 bedrooms; that affordable housing for families is provided in the project; and requested Agency support of the matter. Ric Service, 38155 Via Portuna, stated the State of California prohibits any assistance for this type of project without a vote of the people; and that there may be a potential legal problem if the project is approved. There being no further appearances, the hearing was closed. CRA Minutes 6-13-01, Page 2 Agency Counsel stated that Article 34 of the State Constitution addresses the situation of if a project is a Housing Authority or Community Redevelopment Agency housing project that a vote is needed; that in this case the Agency acquires the land, but the land is conveyed out of the Agency's name; that only one-half of the units are low income and that it is a privately owned project. Agency Member Hodges stated that while the project does seem great; there is a problem with approving an issue that the owner has sued the City and already won a financial award; that not only is a there a gain from the settlement, but this is additional financial assistance; and that in Closed Session this same point of opposition was raised. Agency Member Oden stated that the basic project has already been approved; that it is uncomfortable to delve into the detail of what was presented in Closed Session and through litigation, but that the end is that the City was held responsible; that the project is a good one; that the occupancy rate for the City is at 95% at this time; that the project is needed; that the developer has complied with the requests and conditions, and recommended approval of the matter. Chairman stated that the project is excellent; that architecturally it is pleasing; and that the housing is needed in the City. Agency Member Reller-Spurgin stated that the project was unanimously supported previously; and that even though the litigation has taken place, the question is if the project is not approved, who is really hurt; and that is the people of this City who need the support and recommended approval. Resolutions 1129 and 1130 as recommended were presented; after which, it was moved by Oden, seconded by Reller-Spurgin, and carried by the following vote that R1129 and 1130 be adopted. AYES: Members Jones, Oden, Reller-Spurgin and Chairman Kleindienst NO: Member Hodges ABSENT: None. PUBLIC COMMENTS: None LEGISLATIVE ITEMS: None ADJOURNMENT: There being no further business, Chairman declared the meeting adjourned. PATRICIA A. SANDERS Assistant Secretary MINUTES OF CITY OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY JUNE 20, 2001 A Regular Meeting of the Community Redevelopment Agency of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, June 20, 2001, at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Jones, Hodges, Oden, Reller-Spurgin, and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Agency procedures on June 15, 2001. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 8 of agenda this date. PUBLIC HEARING: None PUBLIC COMMENTS: Howard Lapham stated that Agency Member Jones needs to review the reason regarding problems in the past with bond financings; that there were factors that caused problems that are not present at this time; that the Monte Vista Hotel was in fact a major factor; that there are many concepts for a much needed parking structure downtown; that many in the City have worked to get to a solution for the structure and recommended that history of the bonding be reviewed with certain members of the Agency. John Wessman stated that the Downtown Development Director contract is up for renewal and recommended support of same. LEGISLATIVE ITEMS: A. DESERT FASHION PLAZA On June 6, 2001, the Agency continued this matter to consider the approval of an Exclusive Agreement to Negotiate with John Wessman, dba Wessman Development Company, for the Desert Fashion Plaza, located on a 13-acre parcel on the corner of Tahquitz Canyon Way and Palm Canyon Drive. Executive Director withdrew the item. B. 2000-01 FISCAL YEAR BUDGET AMENDMENTS Recommendation: That the Agency approve budget amendments to allow the repayments of loans and the reloaning of funds from the General Fund. CRA Minutes 6-20-01, Page 2 Executive Director reviewed the staff report and added that the approval will finalize actions for the budget. Agency Member Jones stated that this is just accounting purposes. Resolutions 1132 and 1133 as recommended were presented; after which, it was moved by Hodges, seconded by Oden, and unanimously carried, that R1132 & 1133 be adopted. C. 2000-01 CONTINUING APPROPRIATIONS Recommendation: That the Agency authorize the continuation of appropriations from fiscal year 2000-01 to fiscal year budget 2001-02 for projects not completed. Director of Finance & Treasurer reviewed the staff report. Agency Member Hodges questioned if the allocation concerning Garden Springs would be picked in the next years' fiscal year budget. Chairman clarified that the payment will be based on construction phases. Redevelopment Director stated that the agreement is for one million; that the budget resolution was for$500,000; that the funds would be used for the first part of the land transactions; that after construction phases continue the next part of the agreement will activate; that the next payment will be in the 2002-03 fiscal year budget; that the Agency will be requested to amend the budget as necessary, but at this time this is all that is needed. Agency Member Jones stated that the action includes two projects that should not be supported and therefore would oppose the entire action. Agency Member Hodges stated that the funds are already allocated; that the projects are already approved and that it is simply the continuance of the appropriations into this budget year. Resolution 1134 as recommended was presented; after which, it was moved by Reller-Spurgin, seconded by Oden and carried by the following vote, that R1134 be adopted. AYES: Member Hodges, Oden, Reller-Spurgin and Chairman Kleindienst NO: Member Jones ABSENT: None. D. REDAC2 Recommendation: That the Agency approve an agreement with Redact, Jerry Ogburn, for the continuance of the Village of Palm Springs Development Center for$144,000 for a term of one year, ending fiscal year 2002. A422C Executive Director reviewed the staff report and added that the Downtown Development Director will be included in the quarterly budget update report to recap the status of activity in the downtown area. CRA Minutes 6-20-01, Page 3 Agency Member Oden stated that the Director has been successful in may areas. Agency Member Jones stated that the Director does a good job downtown and recommended that the energy be redirected to derelict hotels in town; that the City does get revenue from filled hotel rooms; that more progress is needed on improving Indian Canyon Avenue; that in the past, others are aware of what is being worked on by the Director before the Council; that it is important that the Director submit a weekly report to keep the Council informed; that the focus of placing nightclubs and bars in certain areas may need to be reviewed; that this type of establishment does require a lot of City services; that it may be that the staff needs to review the financial advantages of these types of businesses versus the service they require to determine whether they are viable businesses for the downtown area. Chairman clarified the action for consideration of the contract. Agency Member Jones stated that the contract could include redirection of the tasks of the Director and that it should be the Agency determining the direction of energy of the contractor. Agency Member Oden stated that there may be some agreement to a refocus of tasks and that it could be discussed in detail when placed on the agenda. Resolution 1135 as recommended was presented; after which, it was moved by Oden, seconded by Reller-Spurgin and unanimously carried, that R1135 be adopted. E. REFINANCING OF 1991 HOUSING TAX ALLOCATION BONDS Recommendation: That the Agency authorize and direct the bond issuance, not to exceed $6,000,000 principal amount of its 2001 Housing Tax Allocation Bonds; approve a purchase contract; and authorize the execution of necessary documentation. (See FA2) See comments by Director of Finance & Treasurer in Housing Authority Minutes of this date. This is concurring action. Resolution 1131 as recommended was presented; after which, it was moved by Hodges, seconded by Oden, and unanimously carried, that R1131 be adopted. ADJOURNMENT: There being no further business, Chairman declared the meeting adjourned. PATRICIA A. SANDERS Assistant Secretary MINUTES OF CITY OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY JULY 5, 2001 A Regular Meeting of the Community Redevelopment Agency of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, July 5, 2001, at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Jones, Hodges, Oden, Reller-Spurgin, and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Agency procedures on June 30, 2001. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 5 of agenda this date. PUBLIC COMMENTS: None. LEGISLATIVE ITEMS: A. SUNRISE VILLAGE — SANTIAGO MANAGEMENT Recommendation: That the Agency approve the request to California Mobile Home Park Corporation to purchase certain property commonly known as Sunrise Village and an additional 20 acres of land adjacent thereto. Director of Redevelopment reviewed the staff report and added that the City Council will have recommended action to concur with the Agency; that this is the first step in the process; that the Agency does own part of the land and that the Agency will continue in negotiations to acquire the entire site; that a Disposition and Development Agreement will be necessary at a later date; but that this action will allow the developer to work with the Internal Revenue Service to start the activities necessary to acquire the park through tax-exempt financing. Agency Member Hodges clarified that this agreement is not confirming the sale, but a statement of willingness to work with negotiations; that when the purchase comes together it should be clear that the rents should not inflate due to the sale. Redevelopment Director stated that the non-profit is created to provide quality living in mobile homes for low-income and that the Disposition and Development Agreement could include restrictive language. Resolution 1136 as recommended was presented; after which, it was moved by Hodges, seconded by Jones, and unanimously carried that R1136 be adopted. CRA Minutes 7-5-01, Page 2 B. PALM SPRINGS FINANCING AUTHORITY AMENDMENT Recommendation: That the Agency approve an amendment to the Joint Powers Agreement which created the Palm Springs Financing Authority, eliminating the expiration date of the agreement, 2-1-2020; and allowing the agreement to remain in place until terminated by supplemental agreement of the Agency. A2953, A263C. Executive Director stated as a result of bond issues the action does allow the basic need of the Authority for an unlimited expiration date. Director of Finance & Treasurer stated that the term of a bond can not be longer than the term of the Authority; that typically terms for Authorities are unlimited; and recommended approval. Agency Member Jones stated that personally the support would not be given to the item due to opposition of the refinancing of the Convention Center bonds. Chairman stated that if the extension is not given the Authority cannot do any bonds. Agency Member Jones stated that at the present time if the Authority is not extended the Convention Center bonds could not be refinanced and stated opposition to the item. Resolution 1137 as recommended was presented; after which, it was moved by Hodges, seconded by Kleindienst and carried by the following vote that R1137 be adopted. AYES: Member Hodges, Oden, Reller-Spurgin and Chairman Kleindienst NO: Member Jones ABSENT: None. C. FIVE YEAR IMPLEMENTATION PLAN — ROSENOW SPEVACEK Recommendation: That the Agency approve an agreement with Rosenow Spevacek Group Inc., for the preparation of the AB 1290 Five Year Implementation Plan for $12,500. A423C. Executive Director stated that the approval is necessary for compliance of regulations. Resolution 1138 as recommended was presented; after which, it was moved by Hodges, seconded by Jones, and unanimously carried, that R1138 be adopted. ADJOURNMENT There being no further business, Chairman declared the meeting adjourned. PATRICIA A. SANDERS Assistant Secretary MINUTES OF CITY OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY JULY 18, 2001 A Regular Meeting of the Community Redevelopment Agency of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, July 18, 2001, at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Jones, Hodges, Oden, Reller-Spurgin, and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: Assistant City Clerk reported that the agenda was posted in accordance with Agency procedures on July 13, 2001. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) -See items on Page 8 of agenda this date. PUBLIC COMMENTS: None. Mayor convened in Joint Session as Community Redevelopment Agency and the City Council. COMMUNITY REDEVELOPMENT AGENCY/CITY COUNCIL PUBLIC HEARINGS: A. NEW MILLENNIUM DEVELOPMENT, LLC. Recommendation: That the Agency approve a Disposition and Development Agreement with Palm Springs New Millennium Development, LLC to provide a land write-down to facilitate the development of the Star Canyon Resort located on South Palm Canyon Drive, Merged Project Area #1; and that the Council concur. Director of Redevelopment recommended that the Agency open the Public Hearing and continue it to September 5, 2001. Mayor requested a brief staff report before opening the hearing. Director of Redevelopment reviewed the staff report; no further report was given. Mayor declared the hearing open; there being no appearances, Mayor continued the hearing to September 5, 2001. Councilmember Oden stated that he was pleased to see this item back on an agenda. CRA Minutes 7-18-01, Page 2 B. SALE OF PROPERTY—22.21 ACRE NEAR SUNRISE WAY AND SAN RAFAEL Recommendation: That the Council approve the sale of a city-owned 22.21-acre parcel near Sunrise Way and San Rafael Road to the Community Redevelopment Agency; and that the Agency accept said sale and purchase. Director of Redevelopment reviewed the staff report; no further report was given. Mayor declared the hearing open; there being no appearances; the hearing was closed. City Council Resolution 20105 and Community Redevelopment Agency Resolution 1139 as recommended were presented; after which, both resolutions were moved by Hodges, seconded by Oden, and unanimously carried, that R20105 and R1139 be adopted. ADJOURNMENT There being no further business, Chairman declared the meeting adjourned for the purpose of convening as the Community Redevelopment Agency, after which, members continued as the City Council. BARBARA J. WHITE Assistant Secretary MINUTES OF CITY OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY AUGUST 1, 2001 A Regular Meeting of the Community Redevelopment Agency of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, August 1, 2001, at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Jones, Hodges, Oden, Reller-Spurgin, and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Agency procedures on July 26, 2001. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 7 of agenda this date. PUBLIC COMMENTS: None LEGISLATIVE ITEMS: A. RALPH DENNIS Recommendation: That the Agency approve Amendment 1 to A400C with Ralph Dennis to provide construction supervisory services for the neighborhood revitalization program for$75,000, total contract amount $125,000. Director of Redevelopment reviewed the staff report, no further report was given. Resolution 1140 as recommended was presented; after which, it was moved by Hodges, seconded by Oden, and unanimously carried that R1140 be approved. B. GENE AUTRY TRAIL/RAMON ROAD — LAGUNA PACIFIC ENVIRONMENTAL Recommendation: That the Agency approve an Exclusive Agreement to Negotiate with Laguna Pacific Environmental Inc., on Agency and privately owned parcels of approximately 38 acres at the corner of Gene Autry Trail and Ramon Road. A425C. Director of Redevelopment reviewed the staff report, no further report was given. Resolution 1141 as recommended was presented; after which, it was moved by Hodges, seconded by Oden and unanimously carried that R1141 be adopted. CRA Minutes 8-1-01, Page 2 C. HENRY FRANK ARCADE PARKING LOT Recommendation: That the Agency approve an agreement with Pyramid Building & Construction, for the Henry Frank Arcade Parking Lot, Bid Schedule A and Additive Bid Schedule B, for $284,797.40; and amend the budget thereto. CP01-09. A426C. Executive Director reviewed the staff report. Agency Member Reller-Spurgin stated that this item is in response to a request by the Agency and is timely. Res 1142 and 1143 as recommended were presented; after which, it was moved by Reller-Spurgin, seconded by Oden, and unanimously carried, that R1142 & 1143 be adopted. ADJOURNMENT: There being no further business, Chairman declared the meeting adjourned. PATRICIA A. SANDERS Assistant Secretary MINUTES OF CITY OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY SEPTEMBER 5, 2001 A Regular Meeting of the Community Redevelopment Agency of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, September 5, 2001, at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Jones, Hodges, Reller-Spurgin, and Chairman Kleindienst Absent: Agency Member Oden REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Agency procedures on August 31, 2001. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 8 of agenda this date. PUBLIC HEARING: A. NEW MILLENNIUM DEVELOPMENT - DDA Recommendation: That the Agency approve a Disposition and Development Agreement with Palm Springs New Millennium Development, LLC., to effectuate the development of a resort hotel and vacation ownership project on South Palm Canyon Drive, between Mesquite Drive and Sunny Dunes Drive, in merged project area #1 (formerly the South Palm Canyon Project Area). A-----. Executive Director requested the item be continued to September 19, 2001. Motion to continue the Hearing to September 19, 2001 was presented; after which, it was moved by Hodges, seconded by Reller-Spurgin, and unanimously carried that the item be continued. PUBLIC COMMENTS: None. LEGISLATIVE ITEMS: None ADJOURNMENT: There being no further business, Chairman declared the meeting adjourned. PATRICIA A. SANDERS Assistant Secretary MINUTES OF CITY OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY SEPTEMBER 12, 2001 An Adjourned Regular Meeting of the Community Redevelopment Agency of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, September 12, 2001, at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Jones, Hodges, Oden, Reller-Spurgin, and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Agency procedures on September 7, 2001. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 3 of agenda this date. PUBLIC HEARING: None PUBLIC COMMENTS: Joy Meredith, stated that support should be given to both items; that it is difficult to operate with the Plaza being vacant; that the lighting is needed to give a clean look to the area and recommended approval of both matters. Nancy Stuart, 15-year resident, stated that both matters are supported by members of the Community and Palm Springs 1st and recommended approval. Dick Haskamp, Arenas Road Business owner, stated that as a member of Palm Springs 1"the Agency is urged to support both items. Jim Stuart, Palm Springs resident, stated that both items are desirous of support; that the Downtown Development Director does a good job in the downtown and recommended approval. LEGISLATIVE ITEMS: A. DESERT FASHION PLAZA Recommendation: That the Agency approve an Exclusive Agreement to Negotiate with John Wessman dba Wessman Development Company on a 13 acre parcel at the northwest corner of Tahquitz Canyon Way and North Palm Canyon, commonly known as the Desert Fashion Plaza, A427C. Executive Director review the staff report and added that this is a new strategy; that the Agency is requested to approve the agreement to help make the deal come to reality. CRA Minutes 9-12-01, Page 2 Director of Redevelopment added that there will be many factors to consummating the final deal; that the roof on the north part of the mall will be removed; that there is a reconfiguration of space; that portions of the agreement will allow the parking remain open and available for public parking; that the developer may well be the best developer for the project based on experience, architectural design and leasing records. Agency Member Hodges request the agreement be for six months and added that an additional six months could be added if and when needed. Agency Member Oden stated that the area is blighted; that it is an eyesore to the corridor; that action does need to be taken as soon as possible; that the tract record of the develop is good; that this will be a vital and viable project in the City; that there is a side to this developer that many are unaware of; that the developer donates time, money and land to many non-profits; and that the item should be supported. Resolution 1144 as recommended was presented; after which, it was moved by Hodges, seconded by Reller-Spurgin, and unanimously carried, that R1144 be adopted. B. CBD DECORATIVE LIGHTING Recommendation: That the Agency approve the purchase of forty (40) "Uptown" decorative light fixtures from Delta Lighting Systems at a total cost of $67,080. Twenty (20) decorative lights to be purchased for Agency property; twenty (20) decorative lights to be acquired for property owners payable through reimbursement agreements. Executive Director reviewed the staff report and added that the Arenas Road project is two weeks ahead of schedule. Chairman questioned the possibility of installation of outlets in the uptown area. Director of Downtown Development stated that addition outlets cannot be added without an upgrade to the system. Chairman questioned if the fixtures could be modified to include outlets if the electrical system was modified at a later date. Director of Downtown Development stated that the modification could be done to the fixtures at this point and the funds are available; that the new event in the uptown area, "First Friday", was successful, but the need for additional lighting was evident; and that as the event becomes more successful the increase in revenue will assist the merchants in the purchase of the lighting fixtures. Agency Member Hodges stated that eight of the fixtures could be modified with the outlet ability due to the immediate need. Chairman concurred. Resolutions 1145 as recommended and Resolution 1146 as revised were presented; after which, it was moved by Reller-Spurgin, seconded by Hodges, and unanimously carried that 1145 & 1146 be adopted. CRA Minutes 9-12-01, Page 3 ADJOURNMENT: There being no further business, Chairman declared the meeting adjourned. PATRICIA A. SANDERS Assistant Secretary MINUTES OF CITY OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY SEPTEMBER 19, 2001 A Regular Meeting of the Community Redevelopment Agency of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, September 19, 2001, at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Jones, Hodges, Oden, Reller-Spurgin, and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Agency procedures on September 13, 2001. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 9 of agenda this date. PUBLIC HEARING: A. NEW MILLENNIUM DEVELOPMENT- DDA Recommendation: On September 5, 2001, Agency continued this matter to approve a Disposition and Development Agreement with Palm Springs New Millennium Development, LLC. to effectuate the development of a resort hotel and vacation ownership project on South Palm Canyon Drive, between Mesquite Drive and Sunny Dunes Drive, in Merged Project Area #1 (formerly the South Palm Canyon Project Area). A428C. Redevelopment Director reviewed the staff report. Chairman declared the hearing open, there being no appearances, the hearing was closed. Agency Member Reller-Spurgin stated that contemplation had been given to the item; that with the recent terrorist events in New York this may not be the right timing for support of this matter; and with that basis stated opposition to the item. Agency Member Jones stated that contact was made with the Hotel Industry, but no response has been received, indicating an indifference to the project. Chairman stated that the intent of the item is to assist in generating revenue; that Agency Member Reller-Spurgin's concerns are appreciated, but that approval will signal that the Agency does support the project and that it will be a benefit for the Community. City Attorney clarified that the applicant's business name is SCHLEPS LLC. and does need to be modified in the document. CRA Minutes 9-19-01, Page 2 Resolution 1147 as revised was presented; after which it was moved by Hodges, seconded by Oden and carried by the following vote, that R1147 be adopted. AYES: Members Hodges, Jones, Oden and Chairman Kleindienst NO: Member Reller-Spurgin ABSENT: None. B. PLAZA MERCADO— 155 SOUTH PALM CANYON DRIVE Recommendation: That the Agency approve the Third Amendment to a Disposition and Development Agreement A309C, with John Wessman dba Wessman Development Company to settle a liquidated damages claim arising from the construction of the Plaza Mercado shopping center and provide for the construction of a Sonny Bono Memorial Fountain located at 155 South Palm Canyon Drive; and amend the budget in the amount of$128,000 thereto. Director of Redevelopment reviewed the staff report. Chairman declared the hearing open; there being no appearances, the hearing was closed. Resolutions 1148 and 1149 as recommended were presented; after which, it was moved by Reller-Spurgin, seconded by Hodges, and unanimously carried that R1148 & 1149 be adopted. PUBLIC COMMENTS: Michael Brakken, CVEP, requested consideration that the CVEP annual audit be scheduled for review at the next study session. LEGISLATIVE ITEMS: None ADJOURNMENT: There being no further business, Chairman declared the meeting adjourned. PATRICIA A. SANDERS Assistant Secretary MINUTES OF CITY OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY OCTOBER 17, 2001 A Regular Meeting of the Community Redevelopment Agency of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, October 17, 2001, at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Jones, Hodges, Oden, Reller-Spurgin, and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Agency procedures on October 12, 2001. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 9 of agenda this date. PUBLIC HEARINGS: A. DISPOSITION AND DEVELOPMENT AMENDMENT A339C—AGUA CALIENTE BAND OF CAHUILLA INDIANS Recommendation: That the Agency approve Amendment#2 to a Disposition and Development Agreement (DDA) with the Agua Caliente Band of Cahuilla Indians and the Agua Caliente Transfer Corporation to reclassify two properties in the original DDA from Developer Acquired Parcels to Second Acquired Parcels, subjecting them to terms and conditions of Sections 5.2 of Amendment#1. A339C. Agency Counsel requested the item be continued to allow additional negotiations. Chairman declared the hearing open. Motion to continue the hearing to November 7, 2001 was presented; after which, it was moved by Oden, seconded by Hodges, and unanimously carried that the hearing be continued. B. 2001-2006 IMPLEMENTATION AND HOUSING COMPLIANCE PLAN Recommendation: That the Agency approve the Mid-Term Review of the Five- Year Implementation and Housing Compliance Plan. Executive Director requested the matter be continued to October 24, 2001 and added that the consultant did compile some additional numbers and correct a number of discrepancies; and that the continuance would allow the Members of the agency to a full opportunity for the briefing of the report. Chairman declared the hearing open. CRA Minutes 10-17-01, Page 2 Agency Member Hodges stated that the deficiencies in the report should be addressed before the next briefing such as the alleys and alleyways mentioned in various project areas; that names of current businesses should be corrected and updated; that housing issues should be addressed in the Gateway/Highland area; and the related development for the Convention Center should be defined. Redevelopment Director stated that necessary changes would be in the next report. Motion to continue the hearing to October 24, 2001 was presented; after which, it was moved by Reller-Spurgin, seconded by Hodges, and unanimously carried that the hearing be continued. C. SALE OF PROPERTY Recommendation: That the Agency approve the sale of a 53,578 square foot parcel (1.23 acre) to the City of Palm Springs for$60,000, located on the south side of Vista Chino Road and west of Sunrise Way. Merged Project Area 1, formerly Project Area 9B. Director of Redevelopment reviewed the staff report, no further report was given. Agency Member Hodges stated conflict of interest due to proximity of residence. Chairman declared the hearing open; there being no appearances, the hearing was closed. Resolution 1150, as recommended, was presented; after which, it was moved by Reller-Spurgin, seconded by Oden, and unanimously carried, Hodges abstaining, that R1150 be adopted. PUBLIC COMMENTS: Frank Tysen stated opposition to item F; and added that the Agency should require criteria to be met regarding the projects. Steven Payne, stated the project was began 18 months ago; that the obligations and commitments are taken seriously; that the neighborhood has been improved; that the improvements have not just been minor, but above and beyond what was required; that the project could be built without the $200,000 in Agency assistance, but the project would not be in the same fashion; that the reason the development is successful is the partnership developed with the City years ago; that this type of project is exactly the kind of investment the City should make; that even though there were seven years allotted for payback in the last loan, the investment was returned to the City in less than one-half of its due date time; that the entire area is better off due to the improvements from this project; that the question of whether the matter should be postponed until after the election should not be asked; that the project needs to move ahead and is something outstanding being developed for the City. Steven Sims, 255 N. El Cielo, stated that no public funds should be used to fund the proposed bridge; that the developer has stated that the project can be built without Agency assistance, and recommended the funding be forwarded to a skate park for the children in the Community and not to a developer who is asking for greater enhancements to a project. CRA Minutes 10-17-01, Page 3 Ray Lavato stated that none of the funds requested will be used for the bridge; that the Agency has always been supportive in the past of the development; that each time the Agency steps forward with assistance, the investment is returned in less than one-half of the time allotted; that there was a time when the area was blighted; that the area is now a contributor to the tax rolls and a major employer; that there are new homes, new jobs and hope for the future in the area; that the developer believes in the City and that if the City does not grow it will die. LEGISLATIVE ITEMS: D. KEYSER MARSTON ASSOCIATES Recommendation: That the Agency approve a contractual service agreement with Keyser Marston Associates, Inc., to conduct pro forma analysis of various development proposals seeking Agency assistance for an amount of$20,000 and a term of 18 months. A430C. Executive Director reviewed the staff report. Agency Member Hodges stated that there was funding allocated one year ago and questioned if the allocation was completely used. Executive Director stated that the allocation was exhausted and that there were several major projects, such as the Desert Fashion Plaza and Canyon Hotel. Agency Member Hodges stated opposition to the allocation and added that when a fund is set up it seems that the fund is always spent. Executive Director stated that the Agency would be informed when projects come forward necessitating expense. Resolution 1151 as recommended was presented; after which, it was moved by Jones, seconded by Oden, and carried by the following vote, that R1151 be adopted. AYES: Member Jones, Oden, Reller-Spurgin and Chairman Kleindienst NO: Member Hodges ABSENT: None. E. EXCLUSIVE AGREEMENT TO NEGOTIATE — BURNETT DEVELOPMENT Recommendation: That the Agency approve Amendment#2 to A409C with Burnett Development Corporation to extend the term by six months regarding 19.17 and 22.21 acre parcels at the corner of Sunrise Way and San Rafael Road. Director of Redevelopment reviewed the staff report, no further report was given. Agency Member Oden stated that it appears the issue is moving forward and that it is hoped the timeline will remain intact. Resolution 1152 as recommended was presented; after which, it was moved by Reller-Spurgin, seconded by Oden, and unanimously carried, that R1152 be adopted. CRA Minutes 10-17-01, Page 4 F. DESERT SHADOWS OWNER PARTICIPATION AGREEMENT Recommendation: That the Agency approve an Owner Participation Agreement with Desert Shadows III LP providing tax increment financing assistance for offsite improvements for $200,000. A-----; and accept a loan to include approval of a Financing Agreement and Promissory Note in the amount of$200,000 from the City of Palm Springs, A-----; and amend the budget thereto. Director of Redevelopment reviewed the staff report and added that the request to the Agency is for landscaping and street improvements; that the request for financial assistance to increase the wall height from 6 to 8 feet was deleted; that other costs include design costs for the public improvements; that there have been two past programs funded for the project; that all have been completed; that funds are available from fund balance of the project area and recommended approval of the request. Agency Member Oden requested explanation of the funding mechanism. Director of Finance & Treasurer stated that the request is to the redevelopment funds; that the funds have low debt service; that the General Fund will pay the amount to the debt fund and from there the funds are transferred to the Project Capital Fund. Agency Member Jones questioned if there has been a financial analysis done; that typically the analysis is done to determine the gap that needs bridging. Redevelopment Director stated that Keyser Marston did not perform a financial analysis; that when the last agreement was entered into for the 21 units there is now a gap due to the real estate appraisals on empty condos; that the developer must get the condos in the rental pool and furnished; that the last project units ranged from 700-800 square feet; that the new project units are 1,700 square feet; that the question is will the project be built without the findings; that the project will not be the same; that there will be $200,000 less in improvements; that the deficit will reduce amenities to the project; that to keep the hotel/condo at a high rental rate the amenities are needed. Resolutions to approve the Owners Participation Agreement and amend the budget were presented; after which, it was moved by Oden, seconded by Reller- Spurgin, no vote was taken, discussion continued. Agency Member Jones stated that assumptions should not be made; that an analysis does need to be made to see if the loan is justified; that part of the findings is that the project has no other alternative but to seek the redevelopment loan; that the developer has stated that the project would be built anyway and questioned if the Agency Member could make the finding based on the facts entered into the record. Chairman clarified that the developer did state that the improvements would be as great. Agency Member Jones stated that the developer stated the project could be built; that the improvements would be made; that there is a legal question here; and it is questionable how the Agency could give the funding when the developer states the finding is not true. CRA Minutes 10-17-01, Page 5 Redevelopment Director stated that the developer can request the loan; that the purpose of the loan is for land and street scape improvements; that the loan can only be used for public improvements and not for Jacuzzis and the like. Agency Member Jones stated that the finding clearly states that the Agency must make the finding that there is no other financing available; and the developer has stated that the project would be done with the improvements regardless of the loan. Agency Member Reller-Spurgin stated that in review of the list of improvements the majority of costs come from irrigation, removal of poles and the like; that these types of improvements are an improvement to this Community; that the improvements will enhance all three border streets; that is what this type of loan is for; that the request is within the realm of asking; that the developer has always paid the loans back to the Agency and usually in advance. Redevelopment Director stated that real estate values do rise and fall, but that this overall project is very successful; that the land the project is on was vacant for years; that the area was blighted; that the fact is that the developer has spent over $14 million dollars over the past 8 years on this project; and that this is an investment where the quality continues. Agency Member Jones requested clarification on the repayment of the loan. Redevelopment Director stated that the Agency reimburses for improvements; that the value of the project is calculated and the tax increment is determined on the project when the increment exhausts the loan value when the loan is finished. Agency Member Oden stated that this project is between two major portals in the City and that it is desired to see the best at this location. Chairman stated that the funds in question are redevelopment funds; that those funds deal with areas that have blighted conditions; that the funds can not be transferred to the General Fund for overall use by the City; that the funds are set aside for redevelopment; that the Agency abides by the rules; that the goal is to maintain a high level of development; that this project will improve the portals of the City to the best level possible; that the developer has a proven track record of turning property around; that the redevelopment funds will be used to deal with offsite improvements; that this is a tool available and is used throughout the State; that the return on the investment will result in a higher value on the property, that higher taxes are inevitable; that the funds are being used in a prudent manner and that this project will improve the quality of life for the Community. Agency Member Jones questioned if the Agency could legally proceed when the developer has stated the assistance is not needed. Agency Counsel stated that there are several findings that must be made; that improvements must benefit the project area; that blight must be eliminated; that the project must be consistent with the 5 year plan; that what Agency Member Jones is focusing on is not just a repetition of wording, but to get across the point, that if the developer has the ability to do so on its' own, there is no justifiable finding; that the key word is reasonable ability to find financing; that it CRA Minutes 10-17-01, Page 6 would be that the finding means that after investigation there would be a hardship on the developer. Chairman stated that while the required improvements could be made it is the quality enhancements that would be sacrificed and questioned if that finding could be adequate. Agency Counsel stated that the finding should be based without Redevelopment Agency assistance if the developer can find other means of financing. Chairman questioned the ability of the Agency to determine the fact. Agency Counsel stated that if the developer states that no other financing through private means is obtainable or is cost prohibited the finding could be made. Agency Member Hodges stated that the item should be continued to allow further review by staff of the options. Agency Member Oden questioned if a per forma should be requested on each and every project that comes before the Agency and added that this is the first time that Agency Counsel has responded in this manner, which causes concern. Agency Counsel stated that typically a per forma is required; that the per forma addresses the funding gap issues; that frequently smaller project do not require a pro forma; that ultimately the Agency does have to make the finding; and that the Agency determines if the findings should be made. Agency Member Hodges requested a continuance of the item. Agency Member Reller-Spurgin withdrew the second. Motion to continue the item to October 24, 2001 to allow additional information regarding funding options was presented; after which, it was moved by Hodges, seconded by Reller-Spurgin and unanimously carried; that the item be continued. ADJOURNMENT There being no further business, Chairman declared the meeting adjourned. PATRICIA A. SANDERS Assistant Secretary MINUTES OF CITY OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY OCTOBER 24, 2001 An Adjourned Regular Meeting of the Community Redevelopment Agency of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, October 24, 2001, at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Jones, Hodges, Oden, Reller-Spurgin, and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Agency procedures on October 19, 2001. PUBLIC HEARING: A. 2001-2006 IMPLEMENTATION AND HOUSING COMPLIANCE PLAN Recommendation: That the Agency approve the Mid-Term Review of the Five- Year Implementation and Housing Compliance Plan. A431 C Director of Redevelopment reviewed the staff report, handed out a revised Plan, copy on file in Office of the City Clerk, and in answer to questions by Agency stated that a full reporting of project is listed in the new report; that the dumpsite project is projected to initialize the Disposition and Development Agreement in 2002; that the condition of the Indian Manor Hotel is still proceeding through renovations; that the preliminary plans were recently submitted to Planning; that the parcels concerning the Lundin Project are not combined into two parcels; that the questions concerning the historic site survey would allow for study and follow- up; and that the information missing regarding Garden Springs will be filled in upon completion of the project. Chairman declared the hearing open; there being no appearances, the hearing was closed. Resolution 1153 as recommended was presented; after which, it was moved by Oden, seconded by Hodges, and unanimously carried that R1153 be adopted. PUBLIC COMMENTS: Steve Payne read a prepared statement, copy on file in Office of the City Clerk. James Cioffi, Palm Springs, stated that CBM was a right-of-zone project; that the project was to build housing for low/moderate income; that the City did stop the project; that CBM did sue the City; that the suit was settled for $1 million; that that there are some questions that do need to be answered by the Members of the Council; did you have a final conflict of interest with CBM's project; is the City to assist in providing decent housing for low/moderate income families; and finally, in review of this project did the Council show fiscal responsibility. CRA Minutes 10-24-01, Page 2 Frank Tysen stated that he felt many comments are directed to Councilmember Jones and are below the belt; that the Councilmember donates his time to the City and directs his stipend to be given to charity groups; that the residents elected the Councilmember due to the rest of the Council not listening to the residents; that there is deep frustration on behalf of the citizens due to an unfriendly government; that many are concerned with Plaza Mercado and the inaction of the Director of Downtown Development; and that the City's Design Review Committee and Architectural Review Committee always agrees to each others decisions. Bill Davis expressed gratitude to Councilmember Jones for protecting the City's tax dollars. Barbara Proctor stated that the bridge as proposed by Desert Shadows was not to cost the City one cent; that it was pledged that all construction, repairs and maintenance would be handled by the developer; that now the developer is requesting $200,000 in assistance and added that the Council should require a certified audit of the financial situation with Desert Shadows before proceeding with any action. Ray LaVeta, 1533 Chapparall, principle of expansion of Desert Shadows, clarified that the building of the bridge will be totally financed by the developer; that no assistance from the Agency is being sought for the project; that the Agency is being requested to help fund sidewalks, curbs, gutters and landscaping for the expansion; and that this is a big project and will result in big revenue to the City. Jim Stuart stated that if it was not for the Community Redevelopment Agency funding assistance, the Desert Shadows Project would not have been done; that the area was blighted, full of needle and trash; that the area has been cleaned up; that it is a good project; and that it is the type of project that the Agency was created to support. Councilmember Jones exercised Personal Privilege, and read a letter directed to the Fair Political Practice Commission, copy on file in Office of the City Clerk; and added that it is sad when a respected citizen attacks a Councilmember; that it seems that if one can not attack the message they now attack the messenger; that the project in question is supportable; that it is the finding that no other means of financing is available; that it is the same with the downtown parking; that the idea is good, but that there is a different view when one would have to ask the taxpayers to pay for it; that the issues were discussed in Closed Session; that additional details were requested regarding the financial information for the project; that it was made clear if the project did need assistance it would be supportable; that the giving away of $200,000 of taxpayer money from a five minute discussion is just not enough; that proof of need should be furnished; that it was thought that the relationship with Mr. Payne was one of friendship; that personally the election was held for someone to represent the people; that the job is handled to the best of the ability; that it is unfortunate that this situation has come up, but that the Office is not there to do favors for friends, but to be a caretaker of the public's money; that the letter submitted by Mr. Payne has fairy tales in it; that the entire case has been sent to the Fair Political Practice Commission that it is hoped that they will review the matter within two weeks; but that there will be no recluse pending the matter. Chairman stated that at one point he was forced to abstain from certain issues until the Fair Political Practice Commission rendered a determination. CRA Minutes 10-24-01, Page 3 Agency Counsel stated that the Fair Political Practice Commission deals with financial conflict of interest; that if the matter does not involved finances, then the Commission does not address the issue; and added that the matter involving this issue has been withdrawn from the agenda and will be discussed at the November 7, 2001 meeting. LEGISLATIVE ITEMS: B. DESERT SHADOWS OWNER PARTICIPATION AGREEMENT Recommendation: That the Agency approve an Owner Participation Agreement with Desert Shadows III LP providing tax increment financing assistance for offsite improvements for $200,000. A----- and amend the budget thereto. Acting Executive Director stated that the item should be continued to November 7, 2001. Motion to continue the matter to November 7, 2001 was presented; after which, it was moved by Oden, seconded by Hodges, and unanimously approved, that the item be continued. ADJOURNMENT' There being no further business, Chairman declared the meeting adjourned. PATRICIA A. SANDERS Assistant Secretary MINUTES OF CITY OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY NOVEMBER 7, 2001 A Regular Meeting of the Community Redevelopment Agency of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, November 7, 2001, at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Jones, Hodges, Oden, Reller-Spurgin, and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Agency procedures on November 2, 2001. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 8 of agenda this date. PUBLIC HEARING: A. DISPOSITION AND DEVELOPMENT AMENDMENT A339C—AGUA CALIENTE BAND OF CAHUILLA INDIANS Recommendation: On October 17, 2001 Agency continued this matter to approve Amendment#2 to a Disposition and Development Agreement (DDA) with the Agua Caliente Band of Cahuilla Indians and the Agua Caliente Transfer Corporation to reclassify two properties in the original DDA from Developer Acquired Parcels to Second Acquired Parcels, subjecting them to terms and conditions of Sections 5.2 of Amendment#1. A339C. Director of Redevelopment reviewed the staff report and added that the Tennis Center issues are resolved. Chairman declared the hearing open; there being no appearances, the hearing was closed. Agency Member Oden stated that this action will allow the developer to acquire the property and recommended approval. Chairman stated that this is part of the commitment to assist the Agua Caliente Band of Cahuilla Indians with the development of downtown and does indicate a spirit of cooperation. Resolution 1154 as recommended was presented; after which, it was moved by Oden, seconded by Jones, and unanimously carried that R1154 be adopted. PUBLIC COMMENTS: None. 11-07-01, Page 2 LEGISLATIVE ITEMS: B. DESERT SHADOWS OWNER PARTICIPATION AGREEMENT Recommendation: On October 24, 2001 Agency continued this matter to approve an Owner Participation Agreement with Desert Shadows III LP providing tax increment financing assistance for offsite improvements for$200,000. A----- and amend the budget thereto. Executive Director withdrew the item. C. 2001-02 FISCAL YEAR BUDGET AMENDMENTS Recommendation: That the Agency approve 2001-02 Fiscal Year budget amendments to transfer cash to Merged Project Area 1 Capital Project Fund from the Merged Project Area 1 Debt Service Fund, via a repayment of loans to and a reloaning of funds from the General Fund. Executive Director withdrew the item. ADJOURNMENT: There being no further business, Chairman declared the meeting adjourned. PATRICIA A. SANDERS Assistant Secretary